The paper "McDonald’ s Hamburger - Product Analysis" is a perfect example of a micro and macroeconomic case study. The world population is increasingly on fast food. This is largely due to the time saving that go with it and the trendy fashion that people want to subscribe to. The producers of these products are intensifying their efforts to develop more and more brands to keep up with the pace of demand. According to scholars, people consume fast foods due to the availability of tasty brands to choose from; the lower cost of fast food and the level of advertising that fast food companies have staged. McDonald's has been at the forefront of the fast-food industry in leading the wave of change.
But remaining at the top is a new challenge for any business executive. The wave of transformation in the food industry cannot be slighted. The level of competition has gone levels higher and marketers of modern times are devising sophisticated means of survival. McDonald's has done massively well with its hamburger. Largely the company’ s mission has been instrumental to the success and the market influence that the product has achieved.
McDonald's has branded itself as a customer-focused institution by dedicating to providing them with high-quality products (McDonald’ s Australia Limited 2012) Pricing power and policies The pricing decisions are based on the target market. This means that the pricing strategy is discriminative due to the economic differences of consumers in geographical areas of focus (Emden, Calantone & Droge, 2006). For instance, the Australian market is made of well-endowed customers who have a vast knowledge of processed food. The same case applies to other developed countries. Here, the product is marketed as an improved hybrid of the existing processed food items and hence price skimming is applied.
This approach entails quoting a price that is reasonably higher than that of similar existing products. The higher margin helps to recover the initial costs of product development. The prices are reduced gradually over time and finally get rationalized with the industry index (Goldenberg, Lehmann & Mazursky, 2001).
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